The latest quarterly report by the Federal Reserve shows ag bankers are slowly raising interest rates on operating loans to farmers.
Lenders charged an average rate of nearly 5 percent this spring, up from 3.5 percent during the final quarter of 2015 when rates were at historical lows.
For a corn farmer borrowing $500 dollars to cover input costs for the upcoming growing season, University of Minnesota Extension ag business management instructor David Bau (bow) estimates the one and-a-half percent rate hike equals a per-acre increase of nearly $6 dollars.
Continue reading Interest rates to farmers up 1.5% since end of 2015 at Brownfield Ag News.
